(I don’t like having this option turned on since it creates an unnecessary root folder in an archive if a single folder is zipped)

Create a folder on your desktop called “test” and place two text files in it.

Right-click on the folder and choose “Compress with Options” and click “Add”

At this point you end up with an archive which contains the two text files along with an unnecessary and empty folder structure.

If you were to choose “Compress to “test.zip”” instead, a proper archive is built.

The reason I felt it had to do with password protected files is that I would choose “Compress with Options” to include a password and “Compress to…” otherwise.

Having researched this further, I’ve discovered that when you simply choose “Compress with Options”, you get that issue regardless of whether or not you password protect it as shown in the steps above.